First Home Super Savers Scheme

The first home super savers scheme was introduced in the 2017 Federal Budget to help first home buyers enter the property market.

If you’re eligible, you can use the scheme to save money in your super fund for a home deposit.

The scheme was introduced on 1 July 2017 and you may have been able to start making contributions into your super account from that date. From 1 July 2018, you will be able to apply for the release of those contributions and the earnings they have made to put towards purchasing your first home.

How do I qualify?

To access the scheme, you need to meet six criteria. These are:

You are over 18.

You have not previously owned any property in Australia (or you are determined to have suffered financial hardship by the Commissioner of Taxation).

You have not previously released funds under the scheme.

You intend to live in the purchased premises as soon as possible.

You intend to live in the purchased property for at least 6 out of the first 12 months of ownership, after you are able to move in.

You are not using the scheme to buy any premises that can’t be used as a residence, is a houseboat, a motor home or vacant land.

Your eligibility to access the scheme will be assessed on an individual basis. Because of this, you and your partner, sibling or friend can each apply for the scheme and pool your money to purchase a single property. You can even use your scheme earnings to buy a house with someone who is ineligible to use the scheme, as long as you individually are eligible.

How do I contribute?

If you are eligible, you can start making concessional and non-concessional contributions to the super fund of your choice. However, make sure that your chosen fund will be able to release the money, as some funds, like defined benefit interests, or constitutionally protected funds are not able to. You should also enquire about any fees or charges associated with releasing funds under the scheme.

The maximum you can contribute towards the scheme is $15,000 in a single year. Any contributions you make will count against the normal contributions cap for both concessional and non-concessional contributions. Make sure you know how much you are contributing and what type of contribution you are making. Any super guarantee amounts paid by your employer are ineligible to be used for the scheme. There is also a maximum total amount that you can save under the scheme; you can save a total of $30,000 to put towards your home.

How do I access my savings?

When you want to withdraw the money you have saved, you need to apply to the Commissioner of Taxation to make a determination on your savings and the amount they have earned. You will be able to do this via a form on the Australian Taxation Office website, although the form has not been released at the time of writing.

You may be able to withdraw from your super fund 100% of eligible non-concessional contributions, 85% of concessional contributions and any earnings. The earning on your contributions will not be based on the actual investment performance but will be determined by the ATO. The earnings will be based on the rate of 90-day bank bills plus 3%. For example, at the launch of the scheme, the annual return would have been 4.78%, but due to market volatility, the exact rate of return is likely to change over time.

Once your funds have been released, you need to make sure you use the money to buy a home within 12 months. Failure to do so, and to notify the Tax Office, will result in a tax of 20% of your scheme savings, unless you apply for an extension of a further 12 months or recontribute the funds into your super. You will also need to include the released scheme savings in your income tax return for the applicable year.

If you’re thinking about using the first home super saver scheme to buy a home, you should also look at the Canstar star rating for home loans and super funds. You can also read more about home loans and superannuation. To learn more about first home super savers scheme visit the ATO website.

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The following table contains details of the superannuation funds rated by Canstar based on someone aged 40-49. This table has been sorted by one-year performance (highest to lowest).

Please note that the performance information shown in the table is for the investment option used by Canstar in rating of the superannuation product.

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The Star Ratings in this table were awarded in March 2018. The search results do not include all providers and may not compare all features relevant to you. View the CANSTAR Superannuation Star Ratings Methodology and Report. These results are general advice only and not personal financial advice. Ratings are only one factor to take into account when deciding whether to make an investment. Consider the Product Disclosure Statement before making a purchase decision.

Products displayed above that are not 'Sponsored' are sorted as referenced in the introductory text to the table. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information. Products displayed above do not include all products/providers and may not include all features relevant to you. Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise. Performance information shown is for historical periods up to 31/3/2018 and investment options noted in the product information. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown. Performance figures shown reflect net investment performance, i.e net of investment tax, investment management fees and the maximum applicable ongoing management fees and membership fees. Performance information is provided by Rainmaker Information Pty Ltd ABN 86 095 610 996 AFSL 461816 (www.rainmaker.com.au) which provides general information on superannuation. Performance data may not be available for some products. Any advice on this page is general and has not taken into account your objectives, financial situation or needs and is not a recommendation for your particular circumstances. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. You may need financial advice from a qualified adviser.

Performance, fee and other information displayed in the table has been updated from time to time since the rating date and may not reflect the products as rated. The performance and fee information shown in the table is for the investment option used by Canstar in rating of the superannuation product. Annual cost data last updated 01/12/2017.

Investment returns of superannuation products: Canstar considers the annual investment returns of a product’s default investment option, including the default life-stage option where applicable. Where a product does not have a default investment option, annual returns for the investment option with the highest funds under management (FUM) and a 60-80% growth asset allocation are used.

Annual cost includes administration fees and indirect costs (including the investment fee, performance fee where applicable, and any other indirect management costs). This cost is calculated based on the super balance specified and the investment option considered in the 2018 Superannuation Star Ratings, which is the default investment option (including default life-stage options). Where a product does not have a default investment option, annual fees for the investment option with the highest FUM and a 60-80% growth asset allocation are used.

This advice is general and has not taken into account your objectives, financial situation, or needs. Consider whether this advice is right for you. Consider the product disclosure statement (PDS) before making any financial decision. For more information, read Canstar’s Financial Services Guide (FSG).

Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Statistics referenced on this page have been verified by Canstar Research. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917.